28ZFSimplified outline of this Part

28ZF Simplified outline of this Part

Home Guarantee Scheme

This Part deals with the Home Guarantee Scheme. The Home Guarantee Scheme is made up of 4 different streams of guarantees.

First Home Guarantee

The purpose of the First Home Guarantee is to facilitate first home buyers, and buyers who have not held an ownership interest in Australian land in the last 10 years, entering into the housing market sooner. It does this by allowing Housing Australia to issue guarantees each financial year from 2022-23 for loans to such home buyers with a deposit of between 5 and 20 per cent of the property’s value.

New Home Guarantee

The New Home Guarantee is a part of the Home Guarantee Scheme that specifically relates to building a new dwelling or purchasing a newly built dwelling. The purpose of the New Home Guarantee is to support jobs in the residential construction sector and promote home ownership. It does this by allowing Housing Australia to issue up to an additional 10,000 guarantees for each of the 2020-21 and 2021-22 financial years for loans to first home buyers to purchase a newly built dwelling or build such a dwelling. Any unissued New Home Guarantees from 2020-21 can be rolled over into the 2021-22 financial year at the discretion of the responsible Minister; however unissued New Home Guarantees from 2021-22 cannot be rolled over into the following financial year. The New Home Guarantee stream is now closed, and further New Home Guarantees cannot be issued.

Family Home Guarantee

The Family Home Guarantee is a part of the Home Guarantee Scheme that specifically relates to single parents, or single legal guardians, with dependants, including those who are not first home buyers. The purpose of the Family Home Guarantee is to support such single parents, or single legal guardians, on a pathway to home ownership. It does this by allowing Housing Australia to issue guarantees each financial year from 2022-23 for loans to eligible single parents, or single legal guardians, with a deposit of between 2 and 20 per cent of the property’s value. An eligible single parent, or single legal guardian, is not required to be a first home buyer at the time of entering into a loan under the Family Home Guarantee. However, at that time, they must not own property unless, stated broadly:

● they are selling that property at the same time as they are purchasing property under the Family Home Guarantee; or

● they are buying out the existing family home.

The single parent, or single legal guardian, must meet the eligible lender’s credit assessment criteria.

Regional First Home Buyer Guarantee

The purpose of the Regional First Home Buyer Guarantee is to help persons living in a regional area to purchase a home in that area. It does this by allowing Housing Australia to issue up to an additional 10,000 guarantees for each of the 2022-23, 2023-24, 2024-25 and 2025-26 financial years. Additional eligibility requirements relating to the area in which the home is located, and residency in the area, must be satisfied. The Regional First Home Buyer Guarantee stream is now closed, and further Regional First Home Buyer Guarantees cannot be issued under this stream.